The 7 Best Savings Accounts for Kids of 2022

Do you remember how old you were when you had your first bank account? I opened my first account alongside my mom (who was listed as the joint owner) at a nearby credit union when I was in the third grade. For years, that account served as a savings vehicle where I put money from holidays, eighth-grade graduation and — at 15 years old — my first job.

That’s actually not too outside the norm: In 2020, 49% — nearly half — of American children had a savings account, according to Statista.

And money management should start early for kids. Parents should make trips to the bank with them — and make them a big deal — beginning around age 6. You can help them open a savings account, and use that experience to introduce different money concepts, like how they’ll earn interest by leaving their money in the bank.

Good news: Many big-name banks offer accounts for minors, and lots of them are low- or no-fee. Here’s what you need to know about the best savings accounts for kids and other bank products.

Why You Should Open a Bank Account for a Minor

It may be tempting to hold on to your children’s money for them in your own savings account or let them keep it in a piggy bank. But it’s a good idea to open a bank account for them for several reasons.

Opening a bank account can:

  1. Help kids learn the value of money, from saving to spending it.
  2. Help they understand compound interest and how it makes their money grow.
  3. Help them learn to delay instant gratification by saving toward a goal.

Opening an account is also a great way to teach, or reinforce, good budgeting habits. Your child can start learning about saving for college, put money in a high-yield savings account or create a sinking fund (typically, money outside of a traditional savings account or emergency fund) for a summer vacation. By starting early, they’ ll have a better understanding of how money can be a tool to help them achieve their goals and learn about financial…

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